Simeone is facing a torrid season at the Vincent Calderon and was linked a move away from away from the Club to Serie A Giants Inter Milan.
Simeone's men recently crashed out of the Champions league against Real with 4-2 aggregate and currently holds the third place in the league with two games remaining.
After the departure of Jose Mourinho in 2010, the Italian giants have been awful in the league as well as in European Competitions and yet to stood out like before in the top flight again.
Inter has till now appointed 9 managers in the last seven years and recently sacked current boss Stefano Pioli earlier this week.
It is was understood that the Milan side's new owners were ready to jump for the signature of Signature and him a salary of €15m (£12m) per season.
The Argentine has only one year left on his contract and previously indicated his desire to one day manage Inter Milan where he spent two years with during his playing days.
However, at a press conference to promote Atletico's participation in the Audi Cup in Germany during upcoming pre-season, the Argentine has denied such rumours and declared he intends to remain at Atletico Madrid next season.
“The fact that I am here to present this tournament is a clear signal about my permanence,” Simeone said, as reported by Football Italia.
“I’ll see you in July the Audi Cup. We are happy to be competing in this tournament against teams like Liverpool and Bayern who we will surely encounter next season’s Champions League.”
Atletico will be competing at the tournament in Munich beside Bayern Munich, Liverpool and a fourth team which is yet to be confirmed.